Property tax increases across several regions in Java, Indonesia, have drawn national attention, with Pati Regency emerging as the flashpoint of public dissent. The controversy began in May 2025 when Pati Regent Sudewo announced a 250% hike in the Rural and Urban Land and Building Tax (PBB-P2), marking the first adjustment in 14 years.

Kumparan reports that the decision was formalised during a PBB-P2 intensification meeting on May 18, attended by sub-district heads and members of Pasopati, an association representing village officials. Sudewo defended the move as essential for increasing regional revenue, with funds intended for infrastructure upgrades, renovations at RAA Soewondo Hospital, and support for agriculture and fisheries. He noted that Pati’s PBB revenue amounted to IDR29bn ($1.9mn), significantly lower than neighbouring regencies such as Jepara and Rembang, which reported IDR75bn ($4.9mn) and IDR50bn ($3.3mn), respectively, despite Pati’s larger geographical area.

Early protests and tensions with authorities

The policy swiftly met with public opposition. Kumparan details that on August 5, the Pati Public Order Agency (Satpol PP) confiscated donations, including bottled water, collected by community activists in front of the Regent Office. These donations were intended to support a videotron project highlighting local grievances. Protesters confronted authorities to retrieve the contributions, resulting in verbal clashes and physical scuffles. Husaini, chairman of the United Pati Community Action, explained that the donation post was part of an effort to challenge Sudewo’s policy directly.

Plans for a larger protest were announced for August 13, shortly after Pati’s anniversary on August 7. Husaini criticised the cumulative effect of sudden policy changes, which included the sharp PBB hike, a 10% increase in street vendor taxes, and a reduction of school days from six to five. Sudewo initially remained steadfast, claiming that 50% of the PBB target had already been met and questioning whether political motives were driving the protests.

Regent apologises and reverses policy

By August 7, Sudewo issued a public apology for statements perceived as challenging residents. He clarified that the 250% increase applied only to a maximum threshold, with many taxpayers affected far less. He emphasised his intent was to ensure any upcoming demonstration would reflect genuine public concerns. The following day, August 8, Sudewo officially cancelled the 250% hike and promised refunds to residents who had already paid, delegating the process to the Regional Finance and Asset Management Agency (BPKAD) and village chiefs.

Mass protest despite rollback

Despite the rollback, protests proceeded on August 13, with thousands gathering at Alun-Alun Pati to demand Sudewo’s resignation. Kumparan describes an intense scene, including mothers, community volunteers, donations, floral arrangements, and banners critical of the regent. Demonstrators clashed with police attempting to move a container truck used as a stage, and some tried to dismantle gates. Bottled water and roof tiles were thrown at police, who responded with water cannons and tear gas. Journalists sheltered inside the Regent Office, where no civil servants were present. Sudewo addressed the crowd from a police vehicle, apologising again, though he was struck by projectiles, including bottled water and sandals. Eleven people were arrested for instigating unrest, with 34 demonstrators and seven police personnel treated for injuries.

National attention and allegations of corruption

Tempo notes that the protests drew attention from the national government. President Prabowo Subianto expressed concern through Minister of State Secretariat Prasetyo Hadi, criticising Sudewo’s handling of public dissent. “No specific response has been made yet. However, of course, Prabowo regrets it. That is his general reaction,” Prasetyo said at the State Palace on August 13.

Beyond the tax hike, Sudewo faces scrutiny over alleged financial irregularities. Tempo reports that he is suspected of receiving funds linked to railway line projects under the Ministry of Transport’s Directorate General of Railways during the 2022–2024 fiscal years. KPK spokesperson Budi Prasetyo confirmed that investigations are ongoing and Sudewo is expected to be summoned, though no date has been set.

Property tax unrest beyond Pati

The unrest in Pati is not an isolated case. Tempo and Antara highlight similar tensions across Java, where increases in PBB-P2 have provoked public concern. In Cirebon City, residents have protested what they perceive as burdensome property tax hikes, with amounts reportedly varying from 100 to 200%, and in some instances reaching claims of 1,000%. Hetta Mahendrati, spokesperson for Paguyuban Pelangi Cirebon, called for the local government to revert to 2023 rates. Cirebon Mayor Effendi Edo disputed the extreme figures, explaining that while PBB-P2 had increased, the actual adjustments were far lower. He added that the rates were initially set in 2024 and that he was working to find solutions to avoid overburdening residents.

In Jombang Regency, residents have similarly voiced objections. One resident, Anis Purwatiningsih, reported that her PBB-P2 bill jumped from approximately IDR400,000 ($26.14) per year to IDR3.5mn ($228.76) for two properties over two years. According to Jombang Bapenda Head Hartono, the tax increase has been in effect since 2024 and late payments incur a 1% monthly penalty. Hartono noted that the regent had eased penalties until December 1 to mitigate the impact.

Reports also circulated in Banyuwangi Regency claiming PBB-P2 rates had surged by 200%. Acting Regional Secretary Guntur Priambodo and Bapenda Head Samsudin confirmed that no such increase occurred, emphasising that the multi-rate system previously in use remains in place. They explained that the Ministry of Home Affairs had recommended a switch to a single-rate system, but local authorities retained discretion over tax regulation.

Balancing revenue needs and public acceptance

The series of protests and public debates across Java reflects growing scrutiny of property taxation policies and local government accountability. Citizens in Pati, Cirebon, and Jombang have mobilised to challenge what they perceive as unfair fiscal burdens, while regional leaders face pressure to balance revenue needs with community acceptance. Sudewo’s case, amplified by alleged corruption concerns and national-level attention, underscores how local tax decisions can have both immediate and far-reaching political consequences.